The $1.00 AWS surcharge and the $325 AWS connection charges is estimated to produce funding of approximately $545,811 per year and $163,000 per year respectively (assuming approximately 42,000 water bills and 500 new connections). Over a 20 year period, the AWS surcharge and connections charges will produce approximately $20 million in funding (assuming an interest rate of 3% and 500 new connection per year).

The AWS surcharge and AWS connection charge are intended to fund infrastructure. Because these funding mechanisms are intended to support infrastructure, similar to our existing plant base charges, the AWS surcharge is considered in line with a base charge; not a flow charge. The AWS infrastructure will be interconnected with our existing systems which will benefit all CCUA rate payers. For this reason, it is appropriate to apply the AWS surcharge equally to every water bill.

The AWS surcharge and the AWS connection charges will be funds dedicated only to work associated with the items such as (but not limited to) study, evaluation, land acquisition, property entitlements, design, permitting, construction, and implementation of AWS. These funds will not be used for general operations and maintenance.

The proposed AWS surcharge and connection charges are to establish an initial funding source. The proposed AWS surcharge and connection charges as described will not address all the aspects of study, evaluation, land acquisition, property entitlements, design, permitting, construction, and implementation.